Buying a Foreclosed Home
Getting Started
If you don't mind doing a little work on your home, you could save thousands!!!!
These are the steps that must be followed to buy a foreclosure.
1. Get Pre-Qualified
It's a must and it's free with the right mortgage company. It also lets us know the range of homes that we can target.
2. Preview Homes
We will target an area that you like and preview foreclosures in that area.
3. Fill Out Contract
Once we find a home that you like, we fill out the contract. It's very easy, it only takes about 10 minutes. You will need an earnest deposit check that is refunded if you don't win the bid.
4. Submit Offer
Once we finish the offer I will submit it to the government and wait for a response.
5. Get Ready to Move
We have 45 days to close on your home so let's get ready to clean and paint!!
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Frequently Asked Questions
Buying a Foreclosed Home
Below are some of the most frequently asked questions I get.
How much money will I save?
The money you save when you purchase will vary depending on the condition of the home. Some HUD homes will require more maintenance than others. It is usually this factor that determines just how much you save. I've seen people save more than $15,000.
What's the initial investment?
One of the nice things about purchasing a HUD home is the low initial investment necessary to get started. Depending on your credit, you can move in with as little as 0% to 10% down. What's more, the government will pay most of your closing costs!!
Is there a lot of paperwork?
No. Believe it or not, the government actually requires only about 3-4 forms.
Will the government pay my closing costs?
Yes. The government will pay most of the closing costs, which usually leaves the buyer responsible for only the down payment.
How long will it take to close on a home?
The government allows 45 days to close. However, I've closed many homes in as little as 10 days. Extension can also be requested.
How soon will I have equity in my home?
Since most homes will require some repairs, they are priced below market value, and therefore many have instant equity.
Is there much selection?
Absolutely!!! Last year alone there were over 3000 foreclosures in Houston and the surrounding areas.
I'm an investor, can I buy a foreclosed home?
Some homes are available to investors and some are not. Owner / Occupants do get the first choice.